ASC 820 Application
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FASB Accounting Standards Codification Fair Value Measurements and Disclosures (ASC 820), previously known as FAS 157, provides guidelines for how entities determine fair value for assets and liabilities on financial statements. ASC 820 doesn’t require fair value measurements on any new classes of assets but it does apply to assets and liabilities that are already carried at fair value in accordance with other applicable accounting rules, so for some entities the application of this topic may change current practice. ASC 820 should be applied to financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years.
Prior to FAS 157, currently known as ASC 820, there were several different definitions of fair value and limited guidance for applying those definitions in the Generally Accepted Accounting Principles (GAAP). In addition, that guidance was scattered among many different accounting pronouncements that required fair value measurements, which made it difficult to have consistent reporting in financial statements. FASB decided to issue ASC 820 in an effort to increase consistency and comparability in fair value measurements and for expanded disclosures about fair value measurements.
DerivActiv can help your organization meet ASC 820 (previously FAS 157) compliance. We work with your auditing staff to classify your assets and liabilities (Level 1, Level 2 or Level 3) and apply the appropriate methodology to adjust the market value for non-performance risk.
To speak to a ASC 820 expert, call at 1-866-200-9012.
ASC 820 ClientsDerivActiv has the expertise and proven experience to help many entities comply with ASC 820 accounting standards.
Public Entities & Organizations
Public Entities & Organizations
If you are interested in learning more about ASC 820 (formerly FAS 157), you can download a ASC 820 white paper.
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